From Zero Hedge:

Over the past 48 hours, we had heard pervasive rumors that at least one, maybe more, banks in Europe are on the verge of collapse.

Our thought was, naturally, Dexia, which is the modern equivalent of AIG... not to mention the bank most rescued by none other than the Federal Reserve. Well, we were wrong. And if the Daily Mail is correct, the two banks about to kick the bucket are French SocGen and Italy's UniCredit.

While the fact that these two banks are in trouble has not been lost on the market, which has been sending their CDS to near record highs, the speculation that they are far closer to implosion likely means the equity value of the European banking sector is about to be decimated.

As the News reports: "The merest hint a major bank might fall is likely to reignite panic tomorrow in...

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More on the euro crisis:

Eric Sprott: Why gold is soaring now

Stealth bank runs are spreading across Europe right now

Euro update: Italy and Spain are dangerously close to the "breaking point"